Quality over quantity drives grocery market ahead of inflation
In spite of total grocery market growth remaining subdued at 3.7%, this figure is higher than the grocery price inflation of 1.5%, indicating that shoppers are reaching for premium ranges such as Tesco Finest and Morrisons’ The Best. Furthermore, Waitrose continues to see a remarkably consistent share growth from a low point of 3.6% in November 2008 to a current 4.2%.
Amongst the top four retailers, last period’s trends remain intact: Tesco holds share at 30.8%, while Morrisons and Sainsbury’s have both grown by 6.1% and 4.4%. Asda continues to underperform with its market share back down to a level not seen since November 2008.
Edward Garner, Communications Director for Kantar Worldpanel, explains: “It’s interesting to see shoppers continuing to trade up as demonstrated by Sainsbury’s and Waitrose as well as Tesco Finest. As we emerge from the grip of the recession, quality is back on the agenda. This has come to Asda’s attention with their latest drive to promote their prize-winning products alongside the value message we’ve seen in recent months.”
Somerfield conversions continue to lift the Co-operative share. While Iceland is reaping the results of its push into the convenience sector with aggressive long-term promotions on staple items such as milk, the hard discounters present a mixed picture. Aldi has recorded another strong performance with growth of 7.9% in contrast to Netto which slumped into negative territory with a 2.2% decline. The performance of the Netto stores will no doubt be bolstered in the future by its acquisition by Asda with increases in staffing and product ranges.
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